Governor Kathy Hochul has said New Yorkers will receive inflation rebate checks of up to $400 this fall despite proposed federal budget cuts that reduced aid to the state.
Speaking at the State Fair in Syracuse, Hochul said: “We collected more money than we expected to collect because of inflation. And that came off the backs of hardworking families in New York. So my view is: Give it back to them.” Her comments were reported by Newsday.
Why it Matters
The rebates were included in New York’s 2025–26 state budget, a move designed to return surplus revenue to taxpayers after sales tax receipts rose with inflation. The administration is preparing to send them out from October 2025.
The refunds aim to provide one-time relief for millions of households facing higher living costs and represent a high-profile element of the state budget that also included tax cuts and expanded child tax credits.
Kochul was confirming on Monday that rebates will go ahead as planned, despite Trump’s July budget leaving New York with a shortfall of $750 million in federal funds — and a further $3 billion next year. “This is New Yorkers’ money,” she said.
What To Know
An estimated $2 billion in rebates will be sent out to eight million New Yorkers, according to the state Department of Taxation and Finance.
Eligible residents who filed a 2023 Form IT-201 and met income thresholds will receive checks automatically, with joint filers up to $150,000 getting $400 and single filers up to $75,000 getting $200. Mailings were scheduled to begin in mid-October and continue for a few weeks.
What People Are Saying
The rebates have been criticized by some who feel the state cannot afford it. Democratic State Sen. James Skoufis criticized the refunds as a political stunt in May, saying: “New Yorkers know a gimmick when they see one.”
Hochul said suggestions that the rebates should be withheld in light of the federal budget were “shortsighted.”
“It’s a one-time infusion of money,” Newsday reported her as saying. “It will not be there next year.”
How High Is Inflation In The U.S?
U.S. inflation was flat in July, with gas and grocery declines offsetting higher import costs. Prices rose at a rate of 2.7 percent year-over-year, steady from June and up from April’s 2.3 percent low. Core inflation, excluding food and energy, climbed to 3.1 percent, above the Federal Reserve’s 2 percent target.
New York’s 2025-6 Budget
Beyond the inflation rebate checks, Hochul’s budget for New York also delivers historic middle-class tax cuts, expands the child tax credit to $1,000 per child, ensures universal free school meals, and pays off $8 billion in pandemic-era unemployment insurance debt.
It boosts Medicaid funding by over $4 billion—leveraging a new health-plan tax to secure federal matching, allocates $50 million for a state housing voucher program, ramps up infrastructure—especially schools, roads, and environmental investments—and grants the governor authority to enact up to $2 billion in emergency cuts with legislative oversight.
The post New Yorkers Given Update On $400 Inflation Rebate Checks appeared first on Newsweek.
